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Chinese investments in Sri Lanka does not automatically translates into political influence – Menon
Former Indian Foreign Secretary, Shivshankar Menon has said that although China has invested heavily in countries like Pakistan and Sri Lanka, that does not automatically translate into political influence over a country’s foreign policy, popularity, or into soft power.
He said this responding to a question on the role of China’s Belt and Road Initiative (BRI) plays in advancing China’s economic and soft power interests in South Asia during an interview with E-International Relations magazine.
“The BRI plays a very considerable role in advancing China’s interests. It plays to China’s strengths, which are economic, where it is not really matched by any other power in the subcontinent. Nor do outside powers prioritise countervailing China’s growing influence in the subcontinent. By committing over US$ 100 billion to BRI projects in the subcontinent, China has made herself indispensable to the infrastructure and economic plans of the leaders of several countries in the subcontinent,” he said.
However, at the same time the examples of Pakistan and Sri Lanka suggest that one should be cautious in drawing the conclusion that this automatically translates into political influence over a country’s foreign policy, popularity, or into soft power, he said.
“The attractiveness of the Chinese model or way of doing things is still rather limited, as is their power of attraction. This is still a work in progress and the Chinese leadership has often spoken of the need for China to gain soft power. So, its impact on India’s relations with these countries has not, to my mind, yet peaked. India has other affinities and common interests with our neighbours that China cannot match that I think we should concentrate on, rather than trying to match or imitate China,” he said.
Menon added that in his recent book ‘India and Asian Geopolitics: The Past, Present‘, he suggests that China will not behave as Western powers have. He said that the Chinese are very conscious of their own political and strategic tradition. China, particularly their present leadership, see the last 150 years as a historical aberration, a “century of humiliation,” Menon said.
“It is an aberration in their mind from an imagined past when China was the preeminent power in the world, the largest economy, a technological leader, and so on. Objective historians and non-Chinese might have their own, different view of the past, but it is this perspective and the quest for primacy it produces that seems to drive China’s international behaviour now,” he said.
China’s is a different strategic culture from that of the two previous global superpowers, Great Britain and the USA, he said. The former Indian Foreign Secretary said that China’s geography, history, resource endowment and dependencies on the world are different from those western powers.
“Hence my sense is that they will not behave as western powers have. Today, China is yet to be a global superpower, and it is difficult to predict whether she will succeed in this quest, which is facing resistance,” he said.
Menon also said that if the political relationship between China and India remains adversarial, cutting their economic dependencies on China would become a strategic necessity.
“To my mind, the two countries need to find a new paradigm for the relationship, or a new strategic framework, within which to manage or settle these issues and to take the relationship forward. In other words, the present situation calls for a fundamental reset of India-China relations,” he said.
He added that the biggest challenge for India in the last decade was the fact that the international environment became less supportive of the efforts to transform India, particularly after the global economic crisis that began in 2007-8.
“The rise of China and the growth of China-US strategic rivalry changed the situation, opening new opportunities for India-US relations but also creating challenges in our neighbourhood and on the India-China border where China has been changing the status quo. China has emerged unequivocally as our greatest strategic challenge but is also our greatest trading partner. We now face a complex set of relationships with all our neighbours and the major powers in a world that is adrift between orders,” Menon said.
Menon also said that the idea of hard linear boundaries is a relatively recent one in history, a feature of the Westphalian state that has acquired popular legitimacy with the rise of nationalism. However, South Asia has “old nations in new states” he said, pointing to the limitations of these boundaries.
“For most of history, borders, as opposed to linear boundaries, were zones of interaction and communities straddled these borders, while trading, traveling, and carrying on the normal business of life across these porous borders.
With the evolution of India and its neighbours into modern Westphalian states in the second half of the 21st century, and the partitioning of the subcontinent into post-colonial states, hard boundaries were imposed on ancient communities and nations which did not coincide with natural features or ethnic divisions or with their patterns of life.
This is why border zones in most of our countries have been unstable and increasingly securitised by the state, with unfortunate consequences for the inhabitants. The most extreme example of this phenomenon is Pakistan. But I do believe that there are political and economic solutions to these issues which are increasingly being practised by the other countries in the subcontinent, such as India and Bangladesh,” he said.
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Oil price falls back to pre-Iran war levels
The price of oil has fallen to levels not seen since before the Iran war as traffic through the key Strait of Hormuz shipping route gradually resumes.
Global benchmark Brent crude briefly fell below $72.48 (£55) a barrel, the price it was at the day before the US and Israel launched attacks on Iran on 28 February, before edging up to $73.23.
Energy prices have been on a wild ride since Iran responded to the strikes by effectively closing the strait, a critical waterway for oil and gas shipments.
The cost of crude has been moving sharply lower since the US and Iran signed a Memorandum of Understanding (MOU) on 17 June which set out a 60-day period for negotiations on Tehran’s nuclear programme and other measures to end the war.
Representatives from the two sides met in Switzerland last weekend for talks to end the war, which resulted in the US partially lifting sanctions on Iranian oil exports.
The number of vessels crossing the Strait of Hormuz has risen significantly since the MOU was signed, according to maritime intelligence firm Kpler.
Its latest data suggests 284 vessels have made the transit from 18 June, the day after the deal was signed, although that is is still well below the pre-conflict average of some 138 crossings each day.
The ships passing through the waterway in recent days include those carrying crude oil, liquefied natural gas (LNG), fertiliser and other goods, Kpler told the BBC.
The US and Iran had also formed a “communication line” to prevent misunderstandings “with the aim of safe passage for commercial vessels through the Strait of Hormuz”, mediators Qatar and Pakistan said in a joint statement on Monday.
There has been a “tremendous shift” with far more ships using the strait in recent days, said Dimitris Maniatis, the chief executive of Marisks, a maritime risk advisory firm working with ships stuck in the region.
A limited number of ships can cross a northern passageway with the permission of Iranian authorities, he said.
The US navy has also provided guidance for vessels to travel through a southern route that is safe from mines and other obstacles that has been laid out since the war, Maniatis said.
But the number of ships crossing the strait is still below levels seen before the war, when it was used by more than 100 ships a day.
Hundreds of ships still appear to be waiting in the Gulf.

Fuel prices at the pump rose sharply when the Iran war began, and now the focus is on how quickly they will fall.
“On the back of the lowest oil price since before the Iran war started, drivers should see the average price of petrol fall below 150p [a litre] in the next week or so,” said Simon Williams, head of policy at UK motoring group the RAC. He added the price of diesel “ought to go back under 160p.
Petrol peaked at 159.53p a litre on 28 May, according to the RAC, while diesel has fallen from a high of 191.54p on 15 April.
The average price of regular gasoline in the US has dropped to around $3.93 a gallon after reaching $4 a gallon in April, its highest since 2022, but is still well above pre-war levels.
US President Donald Trump on Wednesday ordered an investigation into major energy companies, accusing Shell, ExxonMobil and other firms of “gouging” drivers by not reducing fuel prices even as oil costs fell.
“Oil prices have come down so much and we are not seeing anything at the pump by comparison the way they should be,” Trump told reporters in the Oval Office.
The American Petroleum Institute, which represents the oil and gas industry in the US, said fuel prices “don’t move in lockstep with crude oil”.
British energy firms have faced similar accusations of unfairly hiking petrol prices since the Iran war.
The UK competition watchdog said last month that there was no widespread evidence of this, adding that average profit margins were “broadly unchanged” between February and March
(BBC)
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Representatives from the Ceylon Chamber of Commerce meet PM
Representatives from the ’The Ceylon Chamber of Commerce’ met with Prime Minister Dr. Harini Amarasuriya on Wednesday [24th of June] at the Parliament premises.
During the meeting, discussions focused on the Sri Lanka Economic and Investment Summit 2026 (SLEIS 2026), which is scheduled to be held on 12 and 13 October 2026. Attention was also given to digitalization initiatives, the introduction of digital technologies in schools under new education reforms, and the transformative role of Artificial Intelligence (AI) in Sri Lanka’s education sector.
Representatives of the Chamber noted that the summit would serve as an important platform for encouraging both local and foreign investment, while also contributing to the shaping of the country’s future economic policies.
The meeting was attended by Krishan Balendra, Chairman of The Ceylon Chamber of Commerce; Vinod Hirdaramani, Deputy Vice Chairman; Shiran Fernando, Secretary General and Chief Executive Officer; Aliki Perera, Deputy Secretary General and Chief Operating Officer; and Anagi Rodrigo-Weerasekera, Chief Economist and Head of Economic Intelligence, along with several other representatives.
[Prime Minister’s Media Division]
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Progress of Housing Project for Malayagam Community families funded by India reviewed
A discussion to review the progress of the housing project under which 4,700 houses are being constructed for the Malayagam community with Indian assistance was held this afternoon (24) at the Presidential Secretariat under the chairmanship of the Chief of Staff to the President, Prabath Chandrakeerthi.
Under this housing programme, 2,026 houses are to be provided to families identified by the National Building Research Institute (NBRI) as being at disaster risk. The remaining houses are expected to be allocated to eligible workers residing in the plantation sector.
Accordingly, the houses will be provided to Malayagam community families living on estates belonging to 22 Regional Plantation Companies, as well as estates under the State Plantations Corporation, Janawasama and Elkaduwa Plantations.
For the construction of each house, the Government of India has allocated Rs. 2.8 million, while the Government of Sri Lanka has contributed Rs. 400,000.
During the discussion, Chandrakeerthi instructed officials to ensure that the housing project is completed before the end of this year. He further directed that land identified for the construction of houses be released without delay and that the National Building Research Institute provide the necessary reports to identify suitable land for the project.
The housing project is being implemented jointly by the Ministry of Plantation and Community Infrastructure, the National Housing Development Authority, the State Engineering Corporation and the Plantation Human Development Trust.
Among those present were Additional Secretary (Development) of the Ministry of Plantation and Community Infrastructure, K. S. Wijayakeerthi; Director General (Engineering), N. D. N. Pushpakumara; Director General (Planning), W. A. K. S. Damayanthi; the Secretary General of the Planters’ Association; and officials from the National Housing Development Authority, the State Engineering Corporation, relevant institutions and plantation companies.
(PMD)
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